In May, we highlighted Fidelity’s retirement data showing record account balances, steady contribution rates, and three straight years of double-digit growth. By most measures, retirement savers have made meaningful progress.

So why don’t they feel like it?

That’s the question raised by Schroders’ latest retirement survey. While workplace retirement plan participants believe they’ll need about $1.2 million to retire comfortably, just over half (51%) expect they’ll retire with less than $500,000. Just 30% think they’ll reach the $1 million mark, despite several years of favorable market returns.

The gap isn’t being driven by investment performance; it’s being driven by everyday life. Rising housing, healthcare, insurance, and utility costs are forcing many households to prioritize immediate needs over long-term goals. In fact, more than half (55%) are unable to save 10% of their paycheck for retirement due to competing expenses and 33% reported having more credit card debt than their retirement savings.

When it comes to workplace retirement plans, shockingly, 27% have decreased contributions to their plan, with 70% doing so in the past two years. Additionally, 27% have already borrowed money from their plans to pay down debt or cover unexpected expenses.

The survey also underscores a behavioral challenge. Nearly one in four participants don’t know how their retirement assets are invested, and many who do are holding significant cash positions because they’re afraid of market declines. In other words, even as balances grow, fear is still influencing investment decisions.

The pressures also vary by generation. Younger workers are juggling student debt, housing affordability, and young families. Gen X is balancing retirement savings while often supporting both children and aging parents. Different challenges, but the same outcome: retirement feels increasingly out of reach.

For advisors, that’s the real opportunity. Clients don’t just need projections, they need perspective. Strong markets have improved many retirement balances, but financial confidence hasn’t kept pace. Helping clients connect today’s decisions with tomorrow’s outcomes, while coaching them through the emotions that often derail long-term investing, can help close the gap between where clients are today, and where they want to be tomorrow.

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